Equinor, a prominent Norwegian energy company, has announced that it may have to abandon its Empire Wind offshore wind project in New York within a few days unless the U.S. government changes its stance, which has currently halted construction. The work on this major renewable energy initiative has been on hold since mid-April, following an order from Interior Secretary Doug Burgum. He instructed the Bureau of Ocean Energy Management to stop construction for further review, citing concerns of rushed approval by the Biden administration. Empire Wind, which commenced development last year, had already navigated a rigorous seven-year permitting journey and is about one-third completed.
President Trump, known for his critical view of renewable energy, particularly offshore wind, has implemented several executive actions supporting traditional fossil fuels like oil, gas, and coal. On his first day as president, he signed an order that temporarily halted offshore wind lease sales and paused approvals, permits, and loans associated with wind energy projects.
Molly Morris, President of Equinor Renewables Americas, expressed urgency over the situation, as the company has poured more than $2.5 billion into the project, and current delays are costing Equinor up to $50 million a week with 11 vessels idling. A substantial portion of the onshore work is already complete, which will eventually integrate the wind farm’s energy into the local power grid.
“If a resolution isn’t reached soon, we’ll have no choice but to terminate the project,” Morris stated, emphasizing the broader implications of jeopardizing contractual and financial commitments in the United States. Such a stoppage could set a dangerous precedent by halting a project well into its execution phase.
The Interior Department has not commented on the situation. Meanwhile, Equinor, which has $60 billion invested in various U.S. energy projects, is exploring legal avenues but prefers a political solution. This means averting prolonged court battles, as necessary summer construction is crucial, with any delays potentially pushing the project back by an entire year.
Meetings have been held between Equinor officials, including CEO Anders Opedal, and Kevin Hassett from the National Economic Council, but requests to meet directly with Secretary Burgum have so far been denied. Empire Wind’s goal is to supply electricity to over 500,000 New York homes by 2026. Equinor acquired its federal lease in 2017, early during Trump’s presidency, with construction and operation plans greenlit in early 2024.
New York, spearheading a coalition of state attorneys general, is legally challenging Trump’s executive order on wind energy. The lawsuit argues that the president overstepped his authority by abruptly halting the permitting process, thereby threatening the advancement of critical renewable energy infrastructure pivotal for the state’s economic, health, and climate objectives.
The White House, however, defends the president’s actions, suggesting that Democratic attorneys general are attempting to derail Trump’s energy agenda rather than collaborate on initiatives aimed at reestablishing America’s leadership in energy production.